Enterprise Risk Management At Hydro One (A) Case Solution
S.W.O.T Analysis
Strengths
- The primary asset of the firm could be its local presence in several places. It founds the firm's reach to the mark audience and guarantees that it is simply available.
- The firm's varied product line can aid it expand its consumer vile and reward for losses in one invention area with increases in another.
- Strong economic position and good health may allow firm to make more investment.
- The firm's viable standing can be upgraded in a diversity of ways, comprising lesser costs, greater visibility, and upgraded brand identity.
Weakness
- Bad-record management techniques may reason the association to lose profitability. Shortages or surplus record can lead to cash shortages or inadequate current assets, both of which have a detrimental impact on liquidity and organizational performance.
- A deficiency of assets for advertising and marketing processes bounds a firm's capacity to grow its customer base and drive replication buying.
- High staff turnover and an absence of the management engagement can increase the acquisition’s expenses and can also cause reduction in the company’s
- Due to a deficiency of native/global market skill, unkind back on investigation and innovation might upset a business victory.
Opportunities
- The exponential growth of human inhabitants, specifically in current or new client segments, presents an important chance for business growth.
- The introduction of innovative skills to support in the generation and circulation of products and facilities can be used to implant invention within corporate processes. Modern technical combination can save costs, rise efficiency, and rapidity up the creation of new goods.
- Reduced interest rates make it easier for businesses to increase assets and obtain credit at a inexpensive cost.
- The govt's incentives and other creativity aimed at boosting economic growth are a favorable external environmental element for the organization.
Threats
- The corporation faces a huge danger from the changing legislative structure and the adoption of new, harsher restrictions. It confuses the business obedience with the applicable criteria.
- Increase in number of direct or indirect entrants could harm maintenance and development of firm’s client base.
- Inflation raises the manufacturing prices and has an impact on corporate efficiency.
- When customers'expenditure designs and buying power are strongly affected by financial crisis, company's presentationhurts.
Enterprise Risk management
The contrast that ERM makes to the operation of a firm vs. not having one is that ERM most likely creates significant and useful markers that assist organizations in recognizing significant risk events and offering advanced warning. The major risk dimensions and analytics enable firms to improve the effectiveness of their research and reporting, allowing them to track anticipated changes in risk probabilities and sensitivities, and so alerting them to adjust their risk tolerance.
Never the less, however the ERM allows for a comprehensive perspective of risks and uncertainties. Integrated risk management techniques focused solely on absorption, minimization, or prevention, however an efficient Reward process provides a framework for an organization to analyze its risk by providing an ability to exploit the economic and competitive conditions in order to improve the competitiveness.
Furthermore, companies that do not use ERM must involve personnel so that they can report and mitigate risk across all business processes divisions. Companies that employ ERM, on the other hand, can strengthen the tools and structure them use to have effective risk mitigation functions consistently. It is critical for the organization to avoid redundant processes; by doing so, the organization will be able to boost productivity by assigning the appropriate amount of funds to reduce risk.The company that implements the ERM process would most likely have:
- A better chance of meeting the specific goals.
- Risk monitoring at various board levels combined.
- Improved knowledge of the uncertainty and risk that an organization faces, as well as a better ability to adapt to risks.
- More knowledgeable danger and course of action.
- Increased adherence to accounting, legislative, and legal obligations.
- Business processes are more productive and useful.
- Assist in ensuring continuity and avoiding unexpected.
- Increase the board's and management's engagement.
The following are the strengths and disadvantages of Hydro One's three-phase ERM process, which comprises a full overview of the organizational risk profile, a training, and risk-based expenditure planning and implementation:
The strengths of the 3 phase ERM process are
- These are the formal techniques that are simple to grasp and use by the company's performance.
- The firm's senior management is heavily involved in the Erm framework.
- The Enterprise Risk Management (ERM) process is likely to provide security and high visibility.
- Such an approach proved to assess the firm's risk appetite on a frequent basis.
`The disadvantage of the 3 phase ERM are
- A few of the weaknesses of the three-phase Erm framework is that it is restricted to the company's senior executives and so is not adequately conveyed to the executive culture.
- Risk consultants can only be associated until and unless others have developed the potential risks.
- Additional flaw is that the biggest risk is prioritized when it comes to identifying the risk-mitigation alternatives.......................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Exploring New Business Opportunities at LoJack
Hayman Capital Management
Lincoln Industries
Differences at Work: Allie (B)
Restructuring of Chinas Automobile Industry after Chinas Entry into WTO
Face-to-Face Communication: Is It Really Necessary in a Digitizing World
Electronic Arts in 2002
Kaplan and Norton’s notion of strategic management systems
ASTRO Gaming
PROJECT MANAGEMENT REPORT
